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Problem - Perpetual inventory using weighted average
Beginning inventory, purchases, and sales for H76 are as follows:
July 1 Inventory 300 units at $120
July 12 Sale 210 units
July 23 Purchase 360 units at $135
July 26 Sale 330 units
Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the July 23 purchase, (b) the cost of the merchandise sold on July 26, and (c) the inventory on July 31.
There are different methods used to allocate overhead cost, but which industry application of allocation is moist useful? Provide the suitable example.
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